The bond offer
In 2018, Mendip Renewables raised £1.8 million through this platform to repay part of the finance used to build the solar farm. Shareholders who also funded the construction remained invested at that time, with the view that they would be offered an exit in three years’ time.
After consultation and approval from the 2018 bondholders, Mendip Renewables is seeking to raise £500,000 through this bond offer. £300,000 will be used to buy back the shares from the equity investors and £200,000 to pay down bonds held by Triodos Bank who invested in the 2018 bonds via the Triodos Community Renewables Underwriting Facility. If there is strong demand for the offer, an additional £400,000 of bonds may be offered with any additional bonds repaying the bonds held by Triodos Bank.
The new bonds will be issued on the same terms as the existing bonds except with a lower starting interest rate of 4.75%, increasing in line with the retail price index annually.
Mendip Renewables bonds are eligible to be held in a Triodos Innovative Finance ISA (IFISA). The IFISA is a type of ISA that allows you to hold crowdfunded debt securities such as this bond. As with all ISAs, there are eligibility criteria and you receive interest tax-free. ISA eligibility does not guarantee returns or protect consumers from losing their money.
To invest in Mendip Renewables’ bonds through a Triodos IFISA, select the ‘Invest through IFISA’ option. This selection will add to your current year IFISA or will open a new IFISA if you haven’t previously opened one.
Transferring an existing ISA
If you want to invest by transferring an existing ISA to a Triodos IFISA you must first request the transfer. You can do this under ‘Account’ once you’ve become a registered user of the platform. Your ISA transfer must be completed first, before you make an application for bonds.